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Members of the board of directors of Security Alarms have recelved the following operating income dota for the year ended May 31.2024 : Chck the
Members of the board of directors of Security Alarms have recelved the following operating income dota for the year ended May 31.2024 : Chck the icon to whew the operating income data.) Members of the board are surpised that the industrial systems product line is not profitable. They commisslon a study to dotermine whiether the company shouid drop the tine. Company accountants estimate that dropping industrial systems will decrease food coet of goods sold by 584,000 and decrease food seling and administrative expenses by 511 , op Read the pavirements. 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Alarn's total operating income under the two alternatives: (a) with the industrial systems line and (b) Without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1 . 3. What have you learned from the comparison in Requirement 2
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